Chile ranked as the second most attractive destination for retail investment in the latest report from the Global Retail Development Index (GDRI) that ranks 30 of the world’s leading emerging economies.

This year’s list – compiled by U.S. consulting agency A.T. Kearney – saw Chile improve its standing from 2011 and leapfrog Uruguay, with the report describing the Andean nation as “one of the most sophisticated and competitve retail markets in Latin America.”

Chile’s dynamically growing economy, which expanded 6.2 percent over the course of the year, was also cited as a major factor by the U.S. consultants.

The report also pointed toward the country’s stable financial sector – characterized by an inflation restricted to just 3.3 percent – and the low risk nature of investing in Chile, which it compared to world powers such as the United States, France and the United Kingdom.

Kearney added that: “Modern retail has surged in Chile because of a strong economy, significant investments by local retailers, and the 9 percent annual increase in modern retail space over the last five years.”

Among the milestones the report mentioned for 2011, was the opening 35 local branches of U.S. supermarket chain, Walmart – a move that inspired other major international retailers that had not yet established a presence in South America to come to Chile, such as Gap and Banana Republic.

Also among the significant events of the last year was the opening of the Costanera Center – the tallest skyscraper in Latin America – which has now become home to exclusive labels such as Longines, G-Star RAW y Façonnable.

Finally it pointed toward a range of global food and beverage chains that have been attracted by “favorable conditions” to operate in the country – noting Dunkin’ Donuts, which is planning an important expansion in the country.

For the second consecutive year the list was headed by Brazil, China advanced three places to come in at third, while Uruguay dropped two places to finish fourth and India slipped to fifth.

Closing out the top where Georgia, United Arab Emirates, Oman, Mongolia and Peru.